Amazon enters the smartphone market – competitors should be afraid

Amazon is holding a launch event on the 18th at which they are expected to launch their first smartphone.

The device is going to be based on a customized Android, similar to what users are familiar with from the Kindle tablet.

A few of the other specifications and features making the rounds:

• Screen size: 4.7-inch
• Resolution: 720p HD
• Processor: Qualcom Snapdragon
• Six camera modules
• 2GB RAM
• Glass-free 3D (camera which tracks the your movement enables this feature)

There are two reasons why competitors should be afraid of Amazon entering the smartphone market.

First of all, they are likely to adopt a similar strategy as they did with the Kindle: Amazon is not trying to make money on the hardware itself but rather sell as many devices as possible in order to give people access to their digital library and generate revenue that way. Just last week we reported the company launching the streaming service Prime Music, completing their wide offering of e-books, movies / TV shows and apps.
With that in mind we believe the pricing of the smartphone is going to be extremely aggressive and make it interesting for the masses.

The Amazon smartphone is not going to be just another Android device which Amazon sells on the cheap in order to increase their customer base and loyalty.
The glass-free 3D feature which will allow the icons of the phone to float above the screen could well be the big innovation in terms of interface the market needs. If the interface is built well in terms of user friendliness, usability it will give the company a real shot at shaking up the smartphone market and it will be interesting to see how Apple and Samsung react.